Gold climbed for the first time in three days, paring a second weekly decline, as a retreat to a two-week low prompted some investors to buy the metal. Silver and palladium also increased.
Immediate-delivery bullion gained 0.5 per cent to $US1376.55 an ounce in Seoul. The metal touched $US1361.39 an ounce yesterday, the lowest price since November 29, is down 0.7 per cent this week. Futures for February delivery rose 0.5 per cent to $US1376.90 an ounce on the Comex in New York.
“Around this level below $US1375, I guess physical guys probably bid some gold,” Bruce Ikemizu, head of commodity trading at Standard Bank in Tokyo, said. “I don't expect too much downside from here. Probably we'll go up gradually. I think we have to wait until New Year to see a real move. I guess the real move is on the upside.”
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The metal has gained 25 per cent this year, set for a 10th annual advance, as investors lost confidence in currencies and sought to protect their wealth from debt woes in Europe. Gold reached an all-time high of $US1431.25 an ounce on December 7.
The dollar weakened against a basket of six major currencies including the euro and the yen, after yesterday falling 0.3 per cent, as European Union leaders agreed to create a mechanism to contain future debt shocks and the bloc's central bank armed itself with more capital. Bullion typically moves inversely to the greenback.
Silver for immediate delivery climbed 1.2 per cent to $US29.2375 an ounce, boosting this week's gain to 2 per cent. The metal has surged 73 per cent this year, outperforming gold. Silver holdings in ETPs gained for a sixth straight day, adding 0.94 metric ton to 15,172.49 tons yesterday, the biggest amount since at least February.
Spot palladium rose 1.3 per cent to $US747.13 an ounce, while immediate-delivery platinum increased 0.2 per cent to $US1702 an ounce.
